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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT

Study Guide
A1 The purpose and types of business organisation (a) (b) (c) (d) (e) Define ‘business organisations’ and explain why they are formed. Describe common features of business organisations. Outline how business organisations differ. List the industrial and commercial sectors in which business organisations operate. Identify the different types of business organisation: (i) (ii) (iii) (iv) (v) Commercial Not-for-profit Public sector Non-governmental organisations Cooperatives

Intellectual level

K K K K K

A2 Stakeholders in business organisations (a) Define stakeholders and explain the agency relationship in business and how it may vary in different types of business organisation. Define internal, connected and external stakeholders and explain their impact on the organisation. Identify the main stakeholder groups and the objectives of each group. Explain how the different stakeholder groups interact and how their objectives may conflict with one another. Compare the power and influence of various stakeholder groups and how their needs should be accounted for, such as under the Mendelow framework. K

(b) (c) (d) (e)

K K K K

EXAM FOCUS POINT
This chapter lays the foundation for an understanding of what organisations are and how they are controlled. These topics represent a higher level of knowledge. According to the Study Guide you must be able to apply knowledge to exam.

1

Purpose of business organisations
1.1 What all organisations have in common
An organisation is: 'a social arrangement which pursues collective goals, which controls its own performance and which has a boundary separating it from its environment'.

Here are some examples of organisations.    A multinational car manufacturer (eg Ford) An accountancy firm (eg Ernst and Young) A

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